China’s “String of Pearls” and India's Two Front War Predicament : Analysis
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Kenya Risks Losing Port of Mombasa to China
Port of Mombasa (file image courtesy KPA)
BY MAREX 2018-12-20 16:08:19
Kenya runs the risk of losing control of the Port of Mombasa if it should default on loans from state financial institution China Exim Bank, according to a new report from Kenya's auditor general. The terms of a $2.3 billion loan for Kenya Railways Corporation (KRC) specify that the port's assets are collateral, and they are not protected by Kenya's sovereign immunity due to a waiver in the contract.
KRC accepted the multi-billion-dollar loan in order to build the Mombasa-Nairobi standard gauge railway (SGR), with construction services provided by China Roads and Bridges Corporation (CRBC), a division of state-owned conglomerate China Communications Construction Company (CCCC).
"The payment arrangement agreement substantively means that the Authority's revenue would be used to pay the Government of Kenya's debt to China Exim bank if the minimum volumes required for [rail] consignment are not met," auditor F.T. Kimani wrote. "The China Exim bank would become a principle over KPA if KRC defaults in its obligations."
In addition, any dispute with China Exim Bank would be handled through an arbitration process in China, not in Kenyan courts. The auditor general expressed concern that the port authority had not disclosed these arrangements in its financial statements.
John Githongo / Twitter
In a social media post, the Auditor General's office emphasized that it had not released the report, which was leaked to the public via unofficial channels. A source within the office told Kenyan outlet Daily Nation that "the issues raised are not conclusive."
In an interview with Kenyan media, KPA managing director Daniel Manduku expressed confidence that the contract clauses would not cause difficulties. "There is no risk of losing the port. In fact, we will pay this loan ahead of time," he said. "We can even take another loan and pay it on time."
The SGR, also known as the Madaraka Express, is a diesel-powered passenger and freight rail service connecting Nairobi and Mombasa. Its construction was plagued by cost overruns, and outside observers have questioned its economic viability. 80 percent of the project was financed by China.
Last month, Kenya's Ethics and Anti-Corruption Commission (EACC) arrested seven China Roads and Bridges Corporation executives on allegations of bribery. The company officials - four Kenyans and three Chinese nationals - allegedly tried to influence investigators who are conducting a corruption probe of the SGR rail project. Separately, two Kenyan officials were charged in August for allegedly corrupt acts in connection with the land acquisition for the rail line.
Kenyan concerns about the transfer of a strategic seaport to China have precedent elsewhere. In December 2017, Sri Lanka handed control of the newly-built port of Hambantota to a Chinese operator in order to satisfy part of its significant debt to Chinese lenders.
BY MAREX 2018-12-20 16:08:19
Kenya runs the risk of losing control of the Port of Mombasa if it should default on loans from state financial institution China Exim Bank, according to a new report from Kenya's auditor general. The terms of a $2.3 billion loan for Kenya Railways Corporation (KRC) specify that the port's assets are collateral, and they are not protected by Kenya's sovereign immunity due to a waiver in the contract.
KRC accepted the multi-billion-dollar loan in order to build the Mombasa-Nairobi standard gauge railway (SGR), with construction services provided by China Roads and Bridges Corporation (CRBC), a division of state-owned conglomerate China Communications Construction Company (CCCC).
"The payment arrangement agreement substantively means that the Authority's revenue would be used to pay the Government of Kenya's debt to China Exim bank if the minimum volumes required for [rail] consignment are not met," auditor F.T. Kimani wrote. "The China Exim bank would become a principle over KPA if KRC defaults in its obligations."
In addition, any dispute with China Exim Bank would be handled through an arbitration process in China, not in Kenyan courts. The auditor general expressed concern that the port authority had not disclosed these arrangements in its financial statements.
John Githongo / Twitter
In a social media post, the Auditor General's office emphasized that it had not released the report, which was leaked to the public via unofficial channels. A source within the office told Kenyan outlet Daily Nation that "the issues raised are not conclusive."
In an interview with Kenyan media, KPA managing director Daniel Manduku expressed confidence that the contract clauses would not cause difficulties. "There is no risk of losing the port. In fact, we will pay this loan ahead of time," he said. "We can even take another loan and pay it on time."
The SGR, also known as the Madaraka Express, is a diesel-powered passenger and freight rail service connecting Nairobi and Mombasa. Its construction was plagued by cost overruns, and outside observers have questioned its economic viability. 80 percent of the project was financed by China.
Last month, Kenya's Ethics and Anti-Corruption Commission (EACC) arrested seven China Roads and Bridges Corporation executives on allegations of bribery. The company officials - four Kenyans and three Chinese nationals - allegedly tried to influence investigators who are conducting a corruption probe of the SGR rail project. Separately, two Kenyan officials were charged in August for allegedly corrupt acts in connection with the land acquisition for the rail line.
Kenyan concerns about the transfer of a strategic seaport to China have precedent elsewhere. In December 2017, Sri Lanka handed control of the newly-built port of Hambantota to a Chinese operator in order to satisfy part of its significant debt to Chinese lenders.
INS Kohassa – a New Bird’s Nest in the Andamans
Posted On: 24 JAN 2019 4:20PM by PIB Delhi
Naval Air Station (NAS) Shibpur was commissioned as INS Kohassa by Admiral Sunil Lanba, PVSM, AVSM, ADC, Chairman COSC and Chief of the Naval Staff today, on 24 Jan 19. The grand ceremony was attended by many dignitaries and senior officials including VAdm Bimal Verma, AVSM, ADC Commander-in-Chief, Andaman and Nicobar Command. The ceremony included presentation of Ceremonial Guard, hoisting of the Commissioning Pennant and reading of the Ship’s Warrant by the Commanding Officer, Commander Kuldeep Tripathi. INS Kohassa has been named after a White-Bellied Sea Eagle, which is a large bird of prey, endemic to Andaman and Nicobar Islands.
NAS Shibpur was established in 2001 as a Forward Operating Air Base (FOAB) for enhanced surveillance in North Andaman. The close proximity of Coco Islands (Myanmar) and wide expanse of Indian Exclusive Economic Zone (EEZ) makes the base a very vital asset. The airfield provides sustained detached operations of Indian Navy, Indian Air Force and Coast Guard aircraft. The Air Station presently operates Short Range Maritime Reconnaissance (SRMR) aircraft and helicopters. These aircraft undertake EEZ Surveillance, Anti-Poaching Missions, Search and Rescue (SAR) and Humanitarian Aid and Disaster Relief (HADR) missions within the ANC Area of Responsibility. As a point of interest, during the search operations of the Malaysian Airlines Flight 370, Dornier DO 228s of the Navy and Coast Guard operated from this very base.
NAS Shibpur was identified by NITI Aayog as one of the ‘Early Bird’ project as part of holistic island development. Towards this, IN has been ready in all respects to facilitate civil flight operations from NAS Shibpur. The runway extension to 10,000 ft is also planned in the near future to facilitate operations of wide-bodied aircraft.
India plans to extend coastal surveillance radar system to Maldives
India plans to extend coastal surveillance radar system to Maldives - Times of India
India plans to extend coastal surveillance radar system to Maldives - Times of India
NIDS China Security Report 2019
China is reinforcing underground military facilities near Tibet-Arunachal border
To Counter China, An Indo-Tibetan Border Police Command In Leh
INS Kohassa – a New Bird’s Nest in the Andamans
https://www.strategicfront.org/forums/threads/china-thwarts-india%E2%80%99s-central-asian-ambitions.2918/
China is reinforcing underground military facilities near Tibet-Arunachal border
To Counter China, An Indo-Tibetan Border Police Command In Leh
INS Kohassa – a New Bird’s Nest in the Andamans
https://www.strategicfront.org/forums/threads/china-thwarts-india%E2%80%99s-central-asian-ambitions.2918/
@Himanshu thanks for creating the tread, it was much needed.
In a show of intent, external affairs ministry sets up Indo-Pacific wing
Highlights
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In a show of intent, external affairs ministry sets up Indo-Pacific wing
Highlights
- India has just set up an Indo-Pacific division in the foreign office
- The division will integrate the Indian Ocean Rim Association (IORA), Asean region and the Quad to the Indo-Pacific table
- The US recently renamed its Pacific Command to the Indo-Pacific Command as it seeks to give teeth to its Indo-Pacific policy
//economictimes.indiatimes.com/articleshow/68883674.cms?utm_source=twitter.com&utm_medium=Social_TW&utm_campaign=ETTWMain&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
Japan set to give largest-ever loan to BD for five ongoing projects
India, US Conduct Anti-Submarine Drills Using New Secure Link for P-8 Aircraft
Earlier this month, the two navies established their first ever secure communication link under the Communications Compatibility and Security Agreement (COMCASA) which was signed between the two countries last September.
With the activation of the secure communication link on India's military platform under COMCASA, the Indian Navy will be able to receive real-time US intelligence on military deployments by China and Pakistan.
Navy seeks access to French base in Djibouti for refuelling
India completes vital Ladakh road
The Story Of BRI So Far—Loose Belt And Bumpy Road
India, US Conduct Anti-Submarine Drills Using New Secure Link for P-8 Aircraft
Earlier this month, the two navies established their first ever secure communication link under the Communications Compatibility and Security Agreement (COMCASA) which was signed between the two countries last September.
With the activation of the secure communication link on India's military platform under COMCASA, the Indian Navy will be able to receive real-time US intelligence on military deployments by China and Pakistan.
Navy seeks access to French base in Djibouti for refuelling
India completes vital Ladakh road
The Story Of BRI So Far—Loose Belt And Bumpy Road
U.S., Partner Navies Sail Together in South China Sea
SOUTH CHINA SEA – A U.S. Navy guided-missile destroyer joined ships from the Indian Navy, Japan Maritime Self-Defense Force, and Republic of Philippine Navy to sail through the South China Sea, May 2-8.
Transiting through international waters were USS William P. Lawrence (DDG 110), Indian Navy destroyer INS Kolkata (D 63) and tanker INS Shakti (A 57), JMSDF helicopter-carrier JS Izumo (DDH 183) and destroyer JS Murasame (DD 101), and Philippine Navy patrol ship BRP Andres Bonifacio (PS 17).
“Our team was really excited to take part in this multi-lateral event,” said Cmdr. Andrew J. Klug, commanding officer, USS William P. Lawrence. “Professional engagements with our allies, partners and friends in the region are opportunities to build upon our existing, strong relationships, as well as learn from each other.”
The ships conducted formation exercises, communication drills, passenger transfers and held a leadership exchange aboard JS Izumo.
“The opportunity of a multi-sail with U.S. Navy and regional partners was a great experience. In addition to building mutual understanding and trust, it also served as a way to enhance peace and stability in the Indo-Pacific region,” said Rear Adm. Hiroshi Egawa, commander, Escort Flotilla 1. “The ability to do various exercises among four different navies smoothly demonstrated professionalism and high operational skills."
Events like this provide opportunities for like-minded navies to train together and promote maritime cooperation throughout a free and open Indo-Pacific.
“Our bond of friendship with our regional partners is as strong as our commitment to maintain peace and stability in the region,” said Capt. Jerry Y. Garrido Jr., commanding officer, BRP Andres Bonifacio.
U.S. 7th Fleet provides security alongside allies and partners throughout a free and open Indo-Pacific. As the U.S. Navy's largest forward-deployed fleet, 7th Fleet operates roughly 50-70 ships and submarines and 140 aircraft with approximately 20,000 Sailors.
SOUTH CHINA SEA – A U.S. Navy guided-missile destroyer joined ships from the Indian Navy, Japan Maritime Self-Defense Force, and Republic of Philippine Navy to sail through the South China Sea, May 2-8.
Transiting through international waters were USS William P. Lawrence (DDG 110), Indian Navy destroyer INS Kolkata (D 63) and tanker INS Shakti (A 57), JMSDF helicopter-carrier JS Izumo (DDH 183) and destroyer JS Murasame (DD 101), and Philippine Navy patrol ship BRP Andres Bonifacio (PS 17).
“Our team was really excited to take part in this multi-lateral event,” said Cmdr. Andrew J. Klug, commanding officer, USS William P. Lawrence. “Professional engagements with our allies, partners and friends in the region are opportunities to build upon our existing, strong relationships, as well as learn from each other.”
The ships conducted formation exercises, communication drills, passenger transfers and held a leadership exchange aboard JS Izumo.
“The opportunity of a multi-sail with U.S. Navy and regional partners was a great experience. In addition to building mutual understanding and trust, it also served as a way to enhance peace and stability in the Indo-Pacific region,” said Rear Adm. Hiroshi Egawa, commander, Escort Flotilla 1. “The ability to do various exercises among four different navies smoothly demonstrated professionalism and high operational skills."
Events like this provide opportunities for like-minded navies to train together and promote maritime cooperation throughout a free and open Indo-Pacific.
“Our bond of friendship with our regional partners is as strong as our commitment to maintain peace and stability in the region,” said Capt. Jerry Y. Garrido Jr., commanding officer, BRP Andres Bonifacio.
U.S. 7th Fleet provides security alongside allies and partners throughout a free and open Indo-Pacific. As the U.S. Navy's largest forward-deployed fleet, 7th Fleet operates roughly 50-70 ships and submarines and 140 aircraft with approximately 20,000 Sailors.
US Navy chief John Richardson to start his 3-day India visit next week
1 min read . 10:08 AM IST, Elizabeth Roche.
John M. Richardson, US Navy, chief of Naval Operations. Photo: AFP
US Navy chief Admiral John Richardson will start a three-day visit to India beginning Sunday to meet his counterpart and other senior officers to strengthen the strategic partnership between the two navies against the backdrop of China flexing its muscle in the strategic Indo-Pacific region.
The 12-14 May visit will be Richardson's second visit to India as the Chief of Naval Operations. The visit comes days after two Indian naval ships joined hands with the navies of the US, the Philippines and Japan for a "Group Sail" through the disputed South China Sea.
In a statement, the US Navy said that the visit "aims to further strengthen the strategic partnership between the two navies by emphasising the importance of information sharing and exchange".
"The strategic environment is becoming more complex and the nature of our shared challenges requires frequent discussion of our views of the maritime domain and how best our two navies can operate in line with our respective objectives," it said.
The Indo-Pacific is a vast geographical swathe is land and ocean that includes countries starting from the east coast of Africa to the west coast of the US including the contested South China Sea. China claims almost the entire South China Sea, while Brunei, Malaysia, the Philippines, Vietnam and Taiwan are also claimants.
The US has conducted a series of "freedom of navigation" exercises in the South China Sea, triggering protests from Beijing over what it says is infringement of sovereignty.
The Indian navy regularly conducts port calls in Singapore and Vietnam besides other countries in the region.
US Navy chief John Richardson to start his 3-day India visit next week
1 min read . 10:08 AM IST, Elizabeth Roche.
John M. Richardson, US Navy, chief of Naval Operations. Photo: AFP
- The 12-14 May visit will be Richardson's second visit to India
- The aim is to strengthen the strategic partnership between the two navies
US Navy chief Admiral John Richardson will start a three-day visit to India beginning Sunday to meet his counterpart and other senior officers to strengthen the strategic partnership between the two navies against the backdrop of China flexing its muscle in the strategic Indo-Pacific region.
The 12-14 May visit will be Richardson's second visit to India as the Chief of Naval Operations. The visit comes days after two Indian naval ships joined hands with the navies of the US, the Philippines and Japan for a "Group Sail" through the disputed South China Sea.
In a statement, the US Navy said that the visit "aims to further strengthen the strategic partnership between the two navies by emphasising the importance of information sharing and exchange".
"The strategic environment is becoming more complex and the nature of our shared challenges requires frequent discussion of our views of the maritime domain and how best our two navies can operate in line with our respective objectives," it said.
The Indo-Pacific is a vast geographical swathe is land and ocean that includes countries starting from the east coast of Africa to the west coast of the US including the contested South China Sea. China claims almost the entire South China Sea, while Brunei, Malaysia, the Philippines, Vietnam and Taiwan are also claimants.
The US has conducted a series of "freedom of navigation" exercises in the South China Sea, triggering protests from Beijing over what it says is infringement of sovereignty.
The Indian navy regularly conducts port calls in Singapore and Vietnam besides other countries in the region.
US Navy chief John Richardson to start his 3-day India visit next week
India, Australia to adopt classified communications: official
Narayan Lakshman
Chennai,May 11, 2019 22:54 IST
Updated:May 11, 2019 23:05 IST
Photo: Twitter/@Australian_Navy
‘System allows several countries to talk together’
Although the Australian Navy is, at present, “hanging off” COMCASA — India’s secure communications agreement with the U.S. — Australia and India are “moving forward” toward a classified-level communications environment, a senior Australian Navy spokesperson said.
The spokesperson said COMCASA (the Communications Compatibility and Security Agreement) was a “major step forward”, especially for interactions between navies of two countries that are restricted to the classified environment, for example conversations on counter-terrorism.
“Now we’ll see India moving to classified communications environment that one would see, for instance, in the Combined Task Force 150, 151 and 152 operations [relating to counter-terrorism, anti-piracy and maritime security], where there’s a bunch of like-minded countries that have a communications system that is operating at the classified level, to be able to allow them to talk together,” the official said.
At the present juncture, communication in an unclassified environment is part of an age-old tradition of ships meeting on the high seas, the spokesperson added, though even in that space, there has recently been an “evolution of authority to Indian Navy ships’ commanding officers to be able to do passage exercises”.
Australian officials said that for a basic exchange of pleasantries and identity, and then doing “some things together”, Indian Navy commanding officers no longer must go back to New Delhi to get authority.
This could even be for conducting an “exercise, in a simple set of manoeuvres, or some gunnery,” an officer said.
India, Australia to adopt classified communications: official
Chennai,May 11, 2019 22:54 IST
Updated:May 11, 2019 23:05 IST
Photo: Twitter/@Australian_Navy
‘System allows several countries to talk together’
Although the Australian Navy is, at present, “hanging off” COMCASA — India’s secure communications agreement with the U.S. — Australia and India are “moving forward” toward a classified-level communications environment, a senior Australian Navy spokesperson said.
The spokesperson said COMCASA (the Communications Compatibility and Security Agreement) was a “major step forward”, especially for interactions between navies of two countries that are restricted to the classified environment, for example conversations on counter-terrorism.
“Now we’ll see India moving to classified communications environment that one would see, for instance, in the Combined Task Force 150, 151 and 152 operations [relating to counter-terrorism, anti-piracy and maritime security], where there’s a bunch of like-minded countries that have a communications system that is operating at the classified level, to be able to allow them to talk together,” the official said.
At the present juncture, communication in an unclassified environment is part of an age-old tradition of ships meeting on the high seas, the spokesperson added, though even in that space, there has recently been an “evolution of authority to Indian Navy ships’ commanding officers to be able to do passage exercises”.
Australian officials said that for a basic exchange of pleasantries and identity, and then doing “some things together”, Indian Navy commanding officers no longer must go back to New Delhi to get authority.
This could even be for conducting an “exercise, in a simple set of manoeuvres, or some gunnery,” an officer said.
India, Australia to adopt classified communications: official